McLaren Raising $758M from Saudi Fund, Ares

Saudi Arabia’s Public Investment Fund (PIF) is in advanced talks to acquire a stake in McLaren as part of a $760 million equity raise for the Formula One team and luxury auto manufacturer, according to Sky News.

As part of the raise, $551.7 million would come from the PIF and Ares Management. An additional $206.9 million would come from existing shareholders.

McLaren, which will enter the Extreme E series in 2022 and has an option to enter Formula E for the 2022-2023 season, has been aggressively raising money.

• In July 2020, McLaren received $206.9 million from its majority shareholder, Bahrain Mumtalakat Holding.
• In December, MSP Sports Capital said it would acquire a 15% stake in McLaren’s racing division over two years for $247 million at a $746 million valuation. 
• In April, McLaren sold and leased back its factory in England for $235 million.

Ares is reportedly raising $1.5 billion for a new fund focused on sports, media, and entertainment.

The asset manager, which has sought to fill pandemic-induced funding gaps for teams and leagues, has investments in the San Diego Padres, Ottawa Senators, and Professional Fighters League, among others.

The PIF, with over $430 billion in assets under management, held major investments in video game companies as of March 31, including $3.1 billion in Activision Blizzard, $1.9 billion in Electronic Arts, and $996.6 million in Take-Two Interactive.